Property OwnershipIntermediateArizona Exam

A cooperative (co-op) differs from a condominium because in a cooperative:

AOwners receive a fee simple deed to their unit
BResidents own shares in a corporation and receive a proprietary lease for their unitCorrect
CEach owner holds an equal undivided interest in all units
DThe HOA manages individual unit sales

Why Residents own shares in a corporation and receive a proprietary lease for their unit Is Correct

Answer B: Residents own shares in a corporation and receive a proprietary lease for their unit

In a cooperative, residents purchase shares in a corporation that owns the building and receive a proprietary lease giving them the right to occupy a specific unit. There is no individual fee simple ownership of a unit.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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